4 ways to cut property taxes
Like clockwork, property taxes for homeowners seem to go up every year.
Strategy: Don’t simply accept the status quo. Take matters into your own hands by trying to reduce your personal property tax bill. Of course, there are no guarantees, but here are four possible options.
Seek an exemption. This common method for reducing property tax and the appropriate procedures vary from state to state, but here are a few common examples.
• Homestead exemptions or rebates: Depending the eligibility requirements, you may qualify for an exemption or rebate. It may be based on income limits.
• Senior tax breaks: Similarly, a “senior citizen”—typically, someone at least 65 years old—might be able to apply for a property tax reduction. Again, income may be one of the criteria.
• Disability exemptions: Disabled individuals may be eligible for an exemption if certain requirements are met.
• Veterans exemptions: Members of the armed forces, past and present, may qualify for an exemption, as well as spouses and dependents of deceased veterans.
Tip: Do the research for your state.
Apply for property tax relief. Various programs around the country offer rebates, tax credits or deferrals. These programs benefit millions of Americans each year. Caveat: Watch out for scammers who say they can help you obtain tax relief for a fee.
Tip: AARP publishes guidance to assist older homeowners.
Go into a deep freeze. So-called “freeze” programs often provide relief to senior citizens or disabled individuals. The property tax amount is frozen and can’t be increased, but you usually have to apply for this benefit.
Tip: Some states have a cap for a limited time instead of a freeze.
Appeal to the authorities. Do you think your home’s value is over-assessed? Appeal to have the value reduced. Generally, you will need to present documentation of comparable homes in the area, photos of your home and verification of dimensions. Follow the procedures for your location.
Tip: Property taxes are deductible by itemizers up to an annual cap